Date of Report: September 30, 2024
Broker Name: CGS International Securities

Divestment of 400 Capitol by MUST
MUST has confirmed the sale of its property, 400 Capitol, for a total price of US$117 million. This transaction is scheduled to close in the fourth quarter of 2024. The divestment of 400 Capitol is part of MUST’s broader strategy to optimize its property portfolio and focus on strengthening its financial health.

Proceeds to Address Debt Repayment
The proceeds from the sale, combined with existing cash reserves, will be used by MUST to repay US$130.7 million in loans due in 2025. This move underscores MUST’s focus on improving its balance sheet by reducing its debt load. The use of proceeds from the 400 Capitol sale is a significant step toward achieving greater financial stability.

Impact on Leverage
Following the sale of 400 Capitol and the subsequent repayment of loans, MUST’s proforma aggregate leverage is expected to improve to 54.2%. This enhancement in financial leverage will provide MUST with increased flexibility in managing future financial commitments and investment opportunities.

This detailed overview, based on the September 30, 2024, report, provides insights into the divestment of 400 Capitol and its strategic importance in helping MUST reduce debt and improve leverage.